Saudi Aramco on 31 December announced completing the full acquisition of shares in Netherlands-based rubber manufacturer Arlanxeo, its joint venture (JV) with German specialty chemicals firm Lanxess.

Aramco in August last year confirmed it was in talks with Lanxess to acquire its partner’s 50 per cent share in the JV, an acquisition process it said at the time would be completed by the end of the year.

In its recent statement, Aramco said it had secured regulatory approvals from all relevant authorities for the transaction, which is valued at $1.71bn.

The deal makes Aramco the sole owner of Arlanxeo, which will continue to operate out of its base in Maastricht, the Netherlands.

Arlanxeo was set up in 2016 as part of Lanxess’ pivot away from low-margin commodity chemicals towards more profitable specialty business lines. The JV generated total sales worth $11.25bn in 2017.

"In addition, full ownership of Arlanxeo will enhance Saudi Aramco’s sustainability efforts to optimise tyre performance-related fuel consumption in line with its efficient fuel/engine R&D strategy, which is focused on increasing fuel efficiency and reducing engine emissions," Aramco said in its statement.

"As a wholly owned subsidiary of Saudi Aramco, Arlanxeo will continue to serve the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber products, principally for the high-volume global tyre and automotive industries‚" Aramco said.